TAMPA, Fla., Dec. 16 /PRNewswire/ -- IMC Mortgage Company (Nasdaq: IMCC)
IMC Mortgage Company ("IMC") announced today that it has entered a definitive
agreement to acquire Mortgage America, Inc. ("Mortgage America"). The
acquisition, which is for an initial payment of 975,000 shares of common stock
of IMC, will be accounted for as a purchase and is expected to close within
the next month. The agreement provides for a contingent payment of additional
shares of IMC common stock at the end of three years based on future growth
and profitability of Mortgage America.
    Mortgage America is a non-conforming mortgage lender based in Bay City,
Michigan established in 1986 by Thomas P. LaPorte and Mary Reid LaPorte. It
originates residential mortgage loans from a network of over 30 retail offices
using direct mail, telemarketing, radio and television advertising. Mortgage
America's current loan origination volume is approximately $25 million per
month.
    Tom LaPorte, who will continue as president of Mortgage America after the
transaction, said, "Mortgage America is a solid company in its own right.
However, this acquisition will benefit our employees and customers alike by
providing greater resources to service Mortgage America's existing customers
and to fuel additional expansion of our products and branch office network."
    George Nicholas, chairman of IMC, said "We are proud that Mortgage America
has decided to join the IMC family of companies. Mortgage America has a strong
presence in the retail origination area and represents a significant
advancement in IMC's goal to increase the contribution to our total loan
volume from this origination channel. Mortgage America was one of IMC's
original limited partners and has sold to IMC approximately $3 to $4 million
of its loan origination volume per month during 1996. We know the Company and
its management and feel that they are an excellent addition to the IMC team."
    IMC Mortgage Company is a Tampa-based specialty consumer finance company
engaged in purchasing, originating, servicing and selling home equity loans
secured primarily by first liens on one-to four family residential properties.
The company has wholesale and retail operations in the United States and in
the United Kingdom through a joint venture.
    Statements in this press release concerning volume of loans, strategy and
future operations are forward-looking statements. There are a number of
important factors that could cause the actual results of IMC and Mortgage
America to differ materially from those indicated in such forward-looking
statements. Those factors include, but are not limited to, residential real
estate values, competition, general economic conditions such as changes in
interest rates and the demand for non-conforming loans, availability of
funding, loan prepayment rates, delinquency and default rates and changes
which influence the loan securitization market generally.

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